Vacumatic,Inc Required:
Using the FIFO Method:
A

question 44

Essay

Vacumatic,Inc.uses the FIFO method in its process costing system.The following data concern the operations of the company's first processing department - Assembly - for a recent month.
$$\begin{array}{l}\begin{array} { | l | r | } \hline \text { Work-ir-process, beginning: }\\\hline \text { Units in process } & 700 \\\hline \text { Percent complete with respect to materials } & 50 \% \\\hline \text { Percent complete with respect to corwersion } & 10 \% \\\hline \text { Costs in the beginning inventory: } & \\\hline \text { Materials cost } & \$ 595 \\\hline \text { Conversion cost } & \$ 2,093 \\\hline \text { Units started into production during the month } & 14,000 \\\hline \text { Units completed and transterred out } & 14,600 \\\hline \text { Costs added to production during the month: } & \\\hline \text { Materials cost } & \$ 21,465 \\\hline \text { Conversion cost } & \$ 440,618 \\\hline \text { Work-ir-process, ending: } & 60 \% \\\hline \text { Units in process } & 60 \% \\\hline \text { Percent complete with respect to materials } & 100 \\\hline \text { Percent complete with respect to conversion } & \\\hline\end{array}\end{array}$$
Required:
Using the FIFO method:
a.Determine the equivalent units of production for materials and conversion costs.
b.Determine the cost per equivalent unit for materials and conversion costs.
c.Determine the cost of ending work-in-process inventory.
d.Determine the cost of units transferred out of the department during the month.

---

Definitions:

Linear Relationship

A type of relationship between two variables where a change in one variable is associated with a proportional change in the other variable.

API Gravity

A measure of the density of petroleum liquids relative to water, used in the petroleum industry to classify oils.

Coefficient Of Correlation

A quantitative analysis that measures the potency and vector of a linear correlation between two entities.

Positive Linear Relationship

A relationship between two variables where an increase in one variable is associated with an increase in the other variable, represented by a positive slope on a scatter plot.